Q: I own a textile mill. I first import the yarn from which the material is manufactured. I supply certain companies material at the manufacturing cost plus ten percent profit. I also wholesale fabric at the wholesale price which is approximately my cost plus twenty percent. I am also a retailer and supply the public at the retail price. When calculating my zakaat, which market am I obligated to take into consideration? Should I evaluate my wealth in accordance to the retailer’s market, wholesaler’s market, or the manufacturer’s market?
A: Since you have purchased the yarn with the intention of trade, zakaat is waajib on it. Zakaat will be paid upon the market value of the yarn at the time when discharging the zakaat. Similarly zakaat is waajib upon the market value of the byproducts of the yarn. Market value refers to the price which the consumer (i.e. the public) generally pays to obtain the item, irrespective whether the person was a manufacturer, retailer or wholesaler.
(أو نية التجارة ) في العروض إما صريحا ولا بد من مقارنتها لعقد التجارة كما سيجيء أو دلالة بأن يشتري عينا بعرض التجارة (شامي 2/267) (فتاوى محمودية 14/130)
Answered by:
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)
